A recent report said that the Bank of Maharashtra had reported a robust net profit and the bank’s continuous efforts resulted in the recovery of loans to around Rs. 368 crore. The reason behind this success was their style of recovering the loans from borrowers who do not turn up to pay the dues.
Bank of Maharashtra formed teams known as “Many against One” (MAO) comprising of bank officials who approach the borrowers at their home or office and counseled them to pay the dues. The borrowers who do not respond to a single person would normally feel embarrassed and would start to pay the dues when a group of officials speak up to them. The MAO team members were from branches, micro asset recovery cells and asset recovery branches.
In his statement Mr. A.S.Bhattacharya said that the MAO teams were effective enough to achieve considerable amount of dues. Around Rs. 400 crore has been recovered in the first half of the current financial year by 20 micro asset recovery cells, five asset reconstruction branches and MAO teams.
An official said that small borrowers who are indebted to pay up to Rs. 10 lakh contributed to about 59 per cent of bank’s total NPAs to about Rs. 1100 crore and the MAO teams were effective against these small borrowers.